January 2026 Paper Industry News Update

January 2026 proved to be one of the most consequential months for the global pulp, paper, and packaging industry in recent years. The month was defined by major corporate restructuring, large-scale investments, sustainability leadership, market volatility, and accelerating adoption of advanced technologies. Below is a single, comprehensive overview capturing all significant international developments reported during January.

Transformational Corporate Developments

International Paper announced a landmark corporate split, separating its global packaging business from its printing and specialty papers operations. Widely regarded as the most important paper industry announcement of January 2026, the move is designed to sharpen strategic focus, improve capital allocation, and unlock shareholder value. The packaging-focused company will concentrate on corrugated and fiber-based packaging growth, while the standalone papers business will pursue strategies tailored to declining but specialized paper markets.

Stora Enso advanced plans to demerge its Swedish forest assets into a new publicly listed forest company by 2027, creating Europe’s largest pure-play forest company. The move aims to simplify Stora Enso’s structure, enhance capital efficiency, and secure long-term wood supply while allowing the parent company to focus on renewable packaging materials.

Lecta secured a lock-up agreement with key creditors and shareholders to support a comprehensive recapitalisation. The plan includes approximately €400 million in debt reduction and improved liquidity for its specialties business, making it one of the most significant financial restructurings in the European paper sector this year.

Major Projects, Investments, and Capacity Expansions

Velvet Care commissioned a new Valmet tissue paper machine at its Klucze factory in Poland, increasing total capacity by 40% to 210,000 tonnes per year.

SUN Automation Group completed installation of a SUN625 Heavy-Duty Rotary Die Cutter for a customer in the U.S. Midwest, strengthening high-speed corrugated converting capacity.

Micro Fab Industries Pvt. Ltd. secured a 200 TPD core board project in the UAE and announced a ₹20 crore investment in a new manufacturing facility in India to support full in-house stock preparation line production.

Barem Ambalaj successfully started up a new paper machine in Türkiye with technical support from Sunnea Oy.

Buckeye Corrugated Inc. opened a 100,000-square-foot greenfield facility in Reno, Nevada, marking its first manufacturing site west of the Rocky Mountains.

Pratt Industries opened a new recycling facility in Rock Hill, South Carolina, reinforcing recycled fiber capacity in North America.

Mergers, Acquisitions, and Strategic Partnerships

UPM and Versowood finalized a strategic partnership strengthening wood supply security in Finland, including reciprocal raw material supply and the transfer of UPM’s Korkeakoski sawmill.

SupplyOne, Inc. acquired Wertheimer Box, expanding its Midwest corrugated packaging footprint.

Groupe Guillin acquired Belgium-based Gruyaert Verpakking and Verpakkingen V de V, strengthening its paper and board food packaging business.

Kemira completed the acquisition of AquaBlue, Inc., enhancing its industrial water treatment services in North America.

Ipack Solutions entered a new agency partnership with DGM Europe, expanding into corrugated packaging machinery.

Leadership Appointments and Organizational Changes

Rayonier Advanced Materials appointed Scott M. Sutton as President and CEO.

Hamburger Recycling (Prinzhorn Group) appointed Sándor Rudnay as Managing Director and Chairman of the Management Board.

Finch Paper named Eric Hanson as Vice President of Operations.

ProAmpac appointed Jeffrey Lee as Executive Vice President and Chief Financial Officer.

McLaren Corrugate appointed Jennifer Riddell as Managing Director.

Sustainability, ESG, and Regulatory Leadership

Metsä Board achieved a CDP Triple A rating, becoming the only Nordic company recognized at the highest level across Climate, Forests, and Water.

UPM received leadership scores in the 2025 CDP assessment across Climate Change, Forests, and Water Security.

Kemira ranked in the top 2% globally for Climate and Water transparency under CDP.

The Forest Stewardship Council (FSC) approved an updated U.S. Forest Stewardship Standard effective April 1, 2026.

Klabin adopted TNFD recommendations, integrating biodiversity and nature-related risks into corporate strategy.

Irani Papel e Embalagem secured inclusion for the second year in Brazil’s B3 Carbon Efficient Index (ICO2).

Two Sides North America assumed responsibility for sustainability messaging for the paper and packaging industry, while AMERIPEN strongly supported the U.S. PACK Act to establish uniform federal packaging claims standards.

Markets, Trade, Pricing, and Financial Results

January also included several important financial results announcements, outlook updates, and balance-sheet related disclosures, providing insight into operating conditions and earnings momentum across the paper and packaging sector.

International Paper, alongside announcing its landmark corporate split, provided financial context underscoring the rationale for separation. Management highlighted diverging margin profiles and capital intensity between its packaging and printing papers segments, with packaging continuing to generate stronger cash flows and growth visibility. The separation is intended to improve financial transparency, enable more targeted capital allocation, and enhance shareholder value by allowing each business to pursue independent financial strategies.

January also included several important financial results announcements and outlook updates, providing insight into operating conditions and earnings momentum across the paper and packaging sector.

Graphic Packaging Holding Company announced its schedule to release fourth-quarter and full-year 2025 financial results in early February, signaling continued investor focus on demand trends for fiber-based consumer packaging made from renewable and recycled materials.

Greif, Inc. issued a correction confirming the timing of its Q1 2026 earnings release and conference call, underscoring the importance of clear financial communication as investors assess performance across industrial packaging, paper, and fiber-based solutions.

West Fraser Timber Co. Ltd. reported it would record a USD 409 million non-cash goodwill impairment related to its U.S. lumber operations, reflecting prolonged market weakness. At the same time, the company issued its 2026 operating and capital expenditure outlook, outlining stable shipment expectations and planned capital spending of USD 300–350 million.

Alongside these company-specific updates, global pulp markets showed early signs of stabilization, with analysts revising 2026 pulp price projections upward, dependent on demand recovery in China, Europe, and North America.

China’s paper mills reduced recovered paper prices across regions due to high inventories and weaker demand, while Buckman announced 5–12% price increases across Europe, the Middle East, and Africa, citing inflationary pressures.

Trade dynamics remained in focus as Woodland Pulp resumed accepting wood from New Brunswick, Canada, following a tariff-related shutdown, highlighting ongoing sensitivity to cross-border fiber supply chains.

Essity confirmed that funds had discontinued legal proceedings related to bond loans, removing a potential financial overhang and reinforcing balance sheet stability.

Technology, Automation, and Innovation

Marbach outlined its 2026 priorities following strong innovation progress in 2025, including digital tools and efficiency-focused die-cutting systems.

Parason installed a foam breaker system at Tamil Nadu Newsprint and Papers Limited (TNPL), improving pulp quality and process stability.

DS Smith, in collaboration with Raymarine, developed a fiber-based packaging solution eliminating single-use plastic and reducing CO₂ emissions by over 60%.

Mitsubishi Chemical launched a PFAS-free EVOH-based paper coating using SoarnoL technology for high-performance food packaging.

The broader industry saw increasing deployment of AI-driven digital twins, advanced converting automation, and data-driven process optimization, reinforcing the shift toward smart manufacturing.

Conclusion

January 2026 stands out as a defining month for the global paper industry. The International Paper split, major financial restructurings, strategic demergers, and sustained investment in sustainable materials and technology underline a sector in transformation. Despite economic uncertainty and cost pressures, the industry continues to demonstrate long-term confidence in fiber-based solutions, circular economy principles, and innovation-led growth.

This article consolidates all major global pulp, paper, and packaging industry developments reported during January 2026.